diff --git a/packages/exec/__tests__/exec.test.ts b/packages/exec/__tests__/exec.test.ts
index aff2ceb4..130f3823 100644
--- a/packages/exec/__tests__/exec.test.ts
+++ b/packages/exec/__tests__/exec.test.ts
@@ -11,7 +11,7 @@ import * as io from '@actions/io'
 /* eslint-disable @typescript-eslint/unbound-method */
 
 const IS_WINDOWS = process.platform === 'win32'
-const SPAWN_WAIT_FOR_FILE = path.join(
+const SPAWN_WAIT_SCRIPT = path.join(
   __dirname,
   'scripts',
   'spawn-wait-for-file.js'
@@ -379,9 +379,11 @@ describe('@actions/exec', () => {
       }
     }
 
-    const args = [SPAWN_WAIT_FOR_FILE, `file=${semaphorePath}`]
-
-    const exitCode = await exec.exec(`"${nodePath}"`, args, _testExecOptions)
+    const exitCode = await exec.exec(
+      `"${nodePath}"`,
+      [SPAWN_WAIT_SCRIPT, `file=${semaphorePath}`],
+      _testExecOptions
+    )
 
     expect(exitCode).toBe(0)
     expect(
@@ -408,10 +410,12 @@ describe('@actions/exec', () => {
       }
     }
 
-    const args = [SPAWN_WAIT_FOR_FILE, `file=${semaphorePath}`, 'exitCode=123']
-
     await exec
-      .exec(`"${nodePath}"`, args, _testExecOptions)
+      .exec(
+        `"${nodePath}"`,
+        [SPAWN_WAIT_SCRIPT, `file=${semaphorePath}`, 'exitCode=123'],
+        _testExecOptions
+      )
       .then(() => {
         throw new Error('Should not have succeeded')
       })
@@ -446,10 +450,12 @@ describe('@actions/exec', () => {
       }
     }
 
-    const args = [SPAWN_WAIT_FOR_FILE, `file=${semaphorePath}`, 'stderr=true']
-
     await exec
-      .exec(`"${nodePath}"`, args, _testExecOptions)
+      .exec(
+        `"${nodePath}"`,
+        [SPAWN_WAIT_SCRIPT, `file=${semaphorePath}`, 'stderr=true'],
+        _testExecOptions
+      )
       .then(() => {
         throw new Error('Should not have succeeded')
       })
@@ -466,7 +472,7 @@ describe('@actions/exec', () => {
     ).toBe(1)
 
     fs.unlinkSync(semaphorePath)
-  })
+  }, 10000)
 
   it('Exec roots relative tool path using unrooted options.cwd', async () => {
     let exitCode: number
diff --git a/packages/exec/__tests__/scripts/spawn-wait-for-file.js b/packages/exec/__tests__/scripts/spawn-wait-for-file.js
index 09e6a912..6c777491 100644
--- a/packages/exec/__tests__/scripts/spawn-wait-for-file.js
+++ b/packages/exec/__tests__/scripts/spawn-wait-for-file.js
@@ -1,51 +1,39 @@
 const childProcess = require('child_process')
 const path = require('path')
 
-function parseArgs() {
-  const result = {}
-  for (const arg of process.argv.slice(2)) {
-    const equalsIndex = arg.indexOf('=')
-    if (equalsIndex === -1) {
-      continue
-    }
-    const key = arg.slice(0, equalsIndex)
-    const value = arg.slice(equalsIndex + 1)
-    result[key] = value
+// Parse args
+const args = {}
+for (const arg of process.argv.slice(2)) {
+  const idx = arg.indexOf('=')
+  if (idx !== -1) {
+    args[arg.slice(0, idx)] = arg.slice(idx + 1)
   }
-
-  return result
 }
 
-const args = parseArgs()
 const filePath = args.file
 if (!filePath) {
   throw new Error('file is not specified')
 }
 
+// Spawn wait-for-file.js with inherited stdio
+// This creates a grandchild process that holds the stdio handles open
+// after this process (the child) exits
 const waitScript = path.join(__dirname, 'wait-for-file.js')
-const waitArgs = [waitScript, `file=${filePath}`]
+const child = childProcess.spawn(process.execPath, [waitScript, `file=${filePath}`], {
+  stdio: ['ignore', 'inherit', 'inherit'],
+  detached: process.platform !== 'win32'
+})
 
-// Spawn with inherited stdio and detached on Unix, non-detached on Windows
-// This keeps the streams open after parent exits
-const isWindows = process.platform === 'win32'
-const spawnOptions = {
-  stdio: 'inherit',
-  detached: !isWindows
-}
-
-// On Windows, we need to hide the window
-if (isWindows) {
-  spawnOptions.windowsHide = true
-}
-
-const waitProcess = childProcess.spawn(process.execPath, waitArgs, spawnOptions)
-
-// Unref so parent doesn't wait for child
-waitProcess.unref()
+// Don't wait for child to exit
+child.unref()
 
+// Handle optional stderr output (must happen BEFORE we exit)
 if (args.stderr === 'true') {
   process.stderr.write('hi')
 }
 
-const exitCode = args.exitCode ? parseInt(args.exitCode, 10) : 0
-process.exit(exitCode)
+// Small delay to ensure child has started and inherited handles
+setTimeout(() => {
+  const exitCode = args.exitCode ? parseInt(args.exitCode, 10) : 0
+  process.exit(exitCode)
+}, 50)